Money laundering risks may arise as a result of legislative and regulatory deficiencies in the financial system. Corruption and taxation issues are the most common sources of risk, followed by drug trafficking, illegal logging, wildlife trafficking, theft, bank fraud, embezzlement, credit card fraud, and the sale of counterfeit goods. The banking, financial markets, real estate, and motor vehicle industries are all used to launder proceeds from these predicate offenses. Proceeds are frequently laundered offshore in regional jurisdictions before being repatriated to other nations, such as Indonesia.
Since the turn of the century, the Indonesian government has increased its legislative efforts to combat financial crime and promote anti-money laundering. Now, Indonesia is making headway in countering vulnerabilities, as authorities continue to issue regulations tailored toward a risk-based approach, and technical compliance with AML standards is generally high.
Early attempts were highlighted by the establishment of the Pusat Pelaporan dan Analysis Transaksi Keuangan (PPATK), Indonesia’s financial intelligence arm, and the passing of legislation aimed explicitly at money laundering and related offenses such as terrorism financing in 2002.
Wallex adheres to high-risk prevention standards and follows the Anti Money Laundering and Countering Financing of Terrorism Laws and Regulations in the fight against money laundering and terrorist financing. Here’s a rundown of how Wallex detects and stops financial crimes, including money laundering and terrorism financing.
In Indonesia, AML compliance is mandatory.
Indonesia’s banks and financial institutions take a risk-based approach to the money laundering dangers they confront by enhancing their AML policies and working toward the criteria set forth in the FATF’s 40 Recommendations. The risk-based approach, which entails analyzing the risk posed by individual customers and clients, is at the heart of FATF AML policy. In practice, Indonesian anti-money laundering systems must:
To identify customers and clients, implement suitable customer due diligence (CDD) methods. For high-risk customers, further due diligence is also required.
Customers are screened against a list of international sanctions, negative media, and politically exposed persons (PEP) lists.
Appoint a dedicated anti-money laundering compliance officer to monitor the internal anti-money laundering program.
Know Your Client (KYC)
In Indonesia, Know Your Client (KYC) regulations are based on Law No. 8 of 2010 on the Prevention and Eradication of Criminal Acts of Money Laundering (the “AML Law”). The AML Law requires financial services providers, such as Wallex, to adopt KYC principles in line with the regulations set forth by each financial services provider’s regulatory institution.
At a minimum, financial services firms’ KYC procedures must achieve the following:
Identification of service users;
verification of the user of the service; and
Transactions of service users are being monitored.
Wallex collaborates with the following organizations to support the Customer Due Diligence process:
#PPATK (Pusat Pelaporan dan Analysis Transaksi Keuangan):
PPATK, or the Indonesian Financial Transaction Reports and Analysis Centre, is an Indonesian government organization in charge of financial intelligence. In 2002, the agency was established to combat suspected money laundering and to offer intelligence on terrorist financing.
For the client PEP screening process, Wallex collaborates closely with PPATK.
#Dinas Kependudukan dan Pencatatan Sipil (Dukcapil)
Dukcapil and Wallex are now working together to verify and identify demographic statistics for potential customers.
Anti-Money Laundering and Counter-Terrorism Financing Laws and Regulations are being implemented.
Wallex follows a strict code of ethics. The compliance team is fully committed to upholding the Criminal Act of Money Laundering and all related laws and regulations, and will identify suspicious financial transactions by performing the following procedures:
monitoring of user transactions;
analysis of transactions; and
Suspicious Financial Transactions are defined as transactions that are suspicious in nature.
In determining if its controls are being executed properly and whether improvement is required, Wallex may consider one or more indicators, as well as other relevant indicators, such as:
A User’s unexpected expansion in business, such as when the same user registers and/or is involved in many company deeds that will open an account;
Non-specific transactions that do not correspond to the User’s known activities and business profiles;
There is unusually high activity on the account at a specific location or at a specific time, or the nature of User transactions is unaccounted for and unusual.
All transactions in the form of complex or unusual transactions with substantial nominal or odd transaction patterns that do not have a clear economic or legal purpose are scrutinized by compliance and AML/CFT professionals.
Each transaction’s origins and purpose must be known. If a transaction is suspected to be suspicious, the staff promptly informs the Compliance Manager so that an investigation can be conducted to determine whether a suspicious transaction report is required.
To protect your data – and your company – Wallex adheres to the strictest security standards. Please contact us at firstname.lastname@example.org if you have any questions.
Wallex Indonesia is a licensed remittance company with the following license number: 20/235/DKSP/83 from Bank Indonesia.